Gold Charts R Us
Waiting for a GungHo

Harry Schultz snippet
Aug 1, 2005

The following snippet is from Harry Schultz' current GCRU, of July 27, 2005. Gold Charts R Us: sent weekly by Email: $US100/mo for 3, 6, 9, or 12-month subscription periods (fax +$120 per 3-months) - you can subscribe here.

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Welcome to GCRU #170 on July 27, 2005 (in our 4th year)

•• Our skip-week luckily, again, worked out well as the gold mkt was busy with what, we hope, will emerge as base building. But it was/is anything but certain. Acute vulnerabilities exist.

• There is a possible (bullish) downwedge in bullion with an upside breakout (target 450, if pattern valid).

• It's bullish that bullion on Mon-Tues [25th/26th] stood still while the US$ rose sharply.

•• The HUI & XAU gold indexes both have megaphone patterns, which are always a wild card - & adds to our caution. I want to see which way they break. The SGI (Schultz Gold Index) contains a couple of lower prices thus more speculative shares which makes it more sensitive than the other 2 gold stk indexes. SGI thus acts like Nasdaq, leads the mkt, up or down. SGI is gold's Nasdaq. Right now, SGI is stronger than its brothers, as are its Spinner lines. So I'm a bit optimistic. Of course SGI can't carry the whole mkt. But it may be giving us an early buy tip, especially for gamblers - who are less risk-adverse than the rest. SGI needs to stay over 12.10 to maintain its thrust.

• Worry Dept: there may be a medium term descending, or unequal symmetrical triangle in gold, both patterns having bearish implications. In any case, a shorterm dip of some sort (eg, to reinforce base action) looks possible-likely before a sustainable upside development.

•• Our Advance/Decline Line stopped rising but didn't fall either, just sideways-going. Its Spinner: 1 up, 1 down. Neutral.

•• Sidekick Paul says "Spinners are mostly on knife edge." Says "bear signals are often triggered when the blue confirming lines dip below zero. HUI & XAU have blue line about to break under zero", he thinks. That's a virtual projection. Says "any downside in the rising price/red timing lines would augment that negative bias." Still, Spinner interpretation is more an art than a science.

•• Great strength has been seen these last 2weeks in Yamana, Virginia Gold & North American Gold. I traded all 3. But a majority are still moving sideways, some with lower bearings.

•• Silver hasn't yet given a dependable signal.

•• The common view that a Chinese exchange rate change would be bad for the US$ has proved to be the opposite, so far. The $ chart looks like it wants to move into a 2nd leg up. ooMain things for U to monitor now: the symmetrical triangle in US$, eg, over 90 or under 88.50 (see chart inside) & gold's Dec closing support at 425.10. These mkts are so delicately balanced that gold Mon/Tues stayed mostly in a 1.50 range & went for hours with virtually no change.

• Strategy here is to avoid buying weakness & limit exposure to stks with strongest RS (Relative Strength). And: go to the bank with ANY shorterm profits that become available. And: stick to strategy to exit some positions &/or 1/2 of positions if nearby support breaks on individual charts, & in rest of mkt if Dec gold support breaks.

• Keep on diversifying into our WWW stocks, while we wait for a GungHo: OK to buy on dips in these stks, basis chart support.

See U in the PS.
Your golden guidedog,
Uncle Harry

COMEX Gold

NovaGold

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[In this weeks issue: Agnico (NYSE & Tor) - Anglo American (Nas) - Cameco (NYSE & Tor) - Cvs Corp (NYSE) - Eagle Plains (Toronto) - Fnx Mining (AMEX & Tor) - Gold (NY) - Gulfmark (NYSE) - Health Mgmt Assoc (NYSE) - Labone Inc (Nas) - Lihir (Sydney & Nas) - Manitowoc (NYSE) - Meridian (NYSE & Tor) - Newcrest Mng (Oz) - Newmont (NYSE & Tor) - North American Gold (Tor) - Novagold (AMEX & Tor) - Orezone Res. (AMEX & Tor) - Perseverance (Oz) - Rio Tinto (NYSE) - SGI - SGS (A/D line) - Sierra Pac Res (NYSE) - Teck Cominco (Toronto) TREND INVESTORS - USD (NYBOT) - Viceroy Explor. (Tor) - Virginia Gold (Tor) - Yamana Gold (AMEX & Tor)]

All charts created with TradeStation by Omega Research 2000.

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Who is Harry Schultz? Chevalier Harry D. Schultz, KHC, KM, KCPR, KCSA, KCSS, is the highest paid investment consultant in the world at US$2,400/hour-US$3,400/hour on weekends (International Edition Guinness Book of Records 1981-2002). To keep in touch with developments around the globe, Harry draws from correspondents in many countries, plus mountains of international newspapers, magazines, and other data. At the top command posts of Harry's elite team are Chief Market Analyst, Paul Griffiths, and Research Editor/geopolitical analyst Gordon Frisch. Loyal HSL and GCRU subscribers in 90 nations are much more than simply names and addresses; Harry and his team consider them part of their cherished global family. Harry is regularly quoted in books, articles, and interviews and by other newsletters (the "alternative press"). Arthur Hailey, a longtime personal friend and HSL subscriber, based his character Lewis Dorsey in the bestseller The Moneychangers, directly on Harry Schultz. Harry has lived for extended periods in 18 nations, and shorter periods in many others. Knighted five times, Harry is a man for all seasons and a true citizen of the world. Contact: E-mail: HSLmentor@racsa.co.cr Fax: Costa Rica (506) 272-6261 Fax: Switzerland (41) 21 652 0525 Mail: POBox 622, CH-1001-Lausanne, Switzerland 2-week trial of GCRU $45 -- yes, sign me up! Copyright ©1964-2006 F.E.R.C. All Rights Reserved. Archives

Reprinted with kind permission at 321gold Inc